420,000 . If demand is good (40\% probability), then the net cash flows will be $24,000 per year for 2 years. If demand is bad ( 60% probabaity), then the net cash flows will be $4,000 ser year for 2 years. Fethe's cost of capital is 13%. Do not round intermediate calculations. a. What is the expected NPV of the project? Negative value, if any, should be indicated by a minus sign. Round your answer to the nearest dollar. $ b. If Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000. In this case, the cash flows that occurred in Years 1 and 2 will be repeated (so if demand was good in Years 1 and 2 , it will continue to be good in Years 3 and 4 ). Write out the decision tree. Note The franchise fee payment at the end of Year 2 is known, so it should be discounted at the risk-free rate, which is 8%. Select the correct decisian tree. The correct graph is minus sign. Round your answer to the nearest doilar. $